What is the cheapest month to visit Iceland? If you’re dreaming of exploring Iceland’s waterfalls, glaciers, and hot springs without breaking the bank, timing your trip right is key. Travel costs in Iceland can vary dramatically depending on the season. In this guide, we’ll reveal the most affordable months to visit, including tips on finding cheap flights, budget-friendly accommodations, and the best times to enjoy Iceland’s beauty for less.
If you care most about price, January almost always wins. Late January into early February tends to bring the lowest flight fares, the best accommodation deals, and the calmest demand across tours and car rentals. November can be nearly as cheap, with one important caveat around the Iceland Airwaves music festival in early November. Summer delivers famous scenery under midnight light, but those same weeks are the costliest of the year.
That’s the short answer. The longer answer adds daylight, weather, festivals, and driving conditions to the picture, then balances them against the savings you can expect.
What actually makes a month “cheap” in Iceland
Several moving parts determine the total cost of a trip:
- Flights to Keflavik International Airport, which swing wildly between shoulder season bargains and peak summer surcharges
- Hotel and guesthouse rates, which flex with international demand, local events, and even weekend patterns
- Car rentals, which drop hard in winter and jump in June through August
- Tour prices and availability, especially for ice caves, glacier hikes, and day tours out of Reykjavík
- Fuel, food, and alcohol, where the trick is less about season and more about shopping smart
Demand dips right after the holidays and again between late October and early December outside festival dates. That dip lines up with the cheapest airfare and the broadest selection of discount room rates.
Weather and daylight matter too. The cheapest months are dark and chilly, which limits how far you can comfortably drive and how much of the Ring Road you might cover. That’s one reason winter is less busy, and lower demand lowers prices.
Maximize your budget and experience Iceland’s magic by traveling in the winter months, where the aurora borealis dances and lower demand opens doors to unforgettable savings.
Embrace the chill of winter in Iceland for unbeatable savings and a front-row seat to nature’s most spectacular shows, where every penny saved adds to the warmth of the adventure.
alis dances and lower demand opens doors to
A month-by-month price map
The chart below blends typical patterns from recent years. Treat it as a directional guide. Exact prices change with fuel costs, exchange rates, and airline capacity, but the overall shape holds steady.
| Month | Flight price index 1=cheapest 5=highest | Hotel price index | Car rental index | Daylight hours Reykjavík | Avg temp °F | Crowd level | Notes |
|---|---|---|---|---|---|---|---|
| Jan | 1 | 1.5 | 1 | 4 to 7 | 28 to 36 | Low | Lowest fares after New Year spike fades mid month |
| Feb | 1.5 | 1.5 | 1.5 | 8 to 10 | 28 to 36 | Low | Northern Lights season, slightly pricier than late Jan |
| Mar | 2 | 2 | 2 | 11 to 13 | 30 to 38 | Low to mid | Watch for Easter week pricing when Easter falls in March |
| Apr | 2.5 | 2 | 2 | 14 to 16 | 34 to 43 | Mid | Shoulder season, better driving but variable weather |
| May | 3 | 2.5 | 2.5 | 18 to 20 | 40 to 48 | Mid | Great value-to-weather ratio, not the cheapest |
| Jun | 5 | 4.5 | 4.5 | 20 to 21 | 46 to 54 | High | Midnight sun and peak prices |
| Jul | 5 | 5 | 5 | 18 to 20 | 50 to 57 | High | Busiest month, book far ahead |
| Aug | 4.5 | 4 | 4 | 15 to 17 | 49 to 55 | High | Prices ease slightly late month |
| Sep | 3 | 3 | 3 | 12 to 14 | 44 to 50 | Mid | Solid value, first auroras, good road conditions |
| Oct | 2 | 2 | 2 | 9 to 11 | 39 to 45 | Low to mid | Prices slide, weather turns, aurora potential grows |
| Nov | 1.5 | 1.5 | 1.5 | 5 to 7 | 32 to 39 | Low | Very cheap, avoid Airwaves week in Reykjavík |
| Dec | 3.5 | 3.5 | 2.5 | 4 to 5 | 28 to 36 | Mid | Festive and pricey over Christmas and New Year |
Reading that table, January appears as the clear price leader, followed by early February and most of November.
Why January wins
- Post-holiday slump: Most travelers head home after New Year’s. Airlines and hotels respond with lower rates to fill empty seats and rooms.
- Aurora season without the December premium: You still get long nights for Northern Lights chasing. With fewer visitors, guided tours can run discounts and smaller groups.
- Cold, but not brutal: Reykjavík winters sit around freezing, often milder than North American inland cities. Wind is the wildcard. Dress well and the cold becomes manageable.
- Value on wheels: Car rental firms drop prices significantly. If you are comfortable with winter driving and choose a proper vehicle, the savings add up.
- Winter-only experiences: Crystal ice caves, snowy waterfalls, blue-hour photography, and cozy geothermal pools feel tailor-made for January.
Timing matters inside the month. Prices tend to be higher during the first week around New Year’s events, then fall quickly. Aim for the second, third, or fourth week for the best deals.
The runners-up: November and early February
November shares much of January’s affordability with one big exception. Iceland Airwaves, Reykjavík’s major music festival, usually lands in early November. Hotel rates spike and availability tightens in the city. Before and after the festival week, prices drop again. Outside Reykjavík, you will still find low-season deals through the month.
Early February is almost as good as late January. You get slightly more daylight, similar chances for aurora, and many of the same winter tours. Toward mid to late February, prices start to inch upward as demand builds for late winter travel and school breaks in some countries.
If you want warmer weather without summer prices, May and September deliver strong value. They are not the cheapest months, but they often feel like the best compromise between cost, road conditions, and daylight.
How to keep costs low no matter when you go
Even if your dates are fixed, smart choices can shrink the bill.
Flights
- Watch sales from Icelandair and PLAY, and set alerts on fare trackers
- Fly midweek when demand is softer
- Pack light to avoid bag fees on low-cost carriers
- Consider a long layover deal if you are pairing Iceland with Europe
Accommodation
- Book cancellable rates early, then recheck prices and rebook if they drop
- Use guesthouses, farm stays, simple cabins, or family rooms in the countryside
- In Reykjavík, compare city center convenience with cheaper neighborhoods on bus lines
- Shared bathrooms are common and can save a lot
- Confirm breakfast and parking the night before can be a meaningful freebie
Car rentals and transport
- Winter: get a 4×4 with good tires and buy gravel protection, which pays for itself on one windshield chip
- Summer: a small sedan can be plenty for the South Coast and Golden Circle
- Off-airport rental companies often price lower and run reliable shuttles
- If you are staying in Reykjavík only, skip the car and use tours or the airport bus
Food and drink
- Pick up groceries at Bónus or Krónan and pack simple lunches
- Gas station hot dogs and soups are a budget staple between sights
- Bring reusable bottles, as tap water is outstanding
- Buy alcohol at duty free on arrival, or keep it simple with a local beer at happy hour
Tours and experiences
- Bundle day trips with a single company to ask for a package rate
- Free or low-cost highlights: Hallgrímskirkja exterior, Sun Voyager, Grotta lighthouse walks, countless waterfalls and coastal viewpoints
- Public pools are a cultural gem and cheap compared to private spa experiences
Weather, daylight, and safety tradeoffs in the cheapest months
January, early February, and November bring short days and changeable weather. This is part of why those months are affordable, and it calls for a smarter plan.
Daylight
- Reykjavík daylight in January grows from about 4 hours at New Year to around 7 hours by month’s end
- February reaches 8 to 10 hours, which feels like a big step up
- November runs about 5 to 7 hours
Temperature and wind
- Typical winter temps in the low 30s Fahrenheit near the coast, colder inland and at altitude
- Wind amplifies cold and can affect road safety and tour operations
Driving conditions
- Expect icy patches, blowing snow, and occasional road closures outside Reykjavík
- The Ring Road can be perfectly fine one day and tricky the next
- F roads in the highlands are closed in winter
Safety and planning resources
- Check road conditions and closures at road.is before you set out
- Track weather and wind forecasts at vedur.is
- Register travel plans and read safety tips at safetravel.is
- Carry a paper map backup and charge your phone fully
What to pack
- Insulated waterproof jacket and pants
- Thermal base layers and mid-layer fleece or wool
- Winter boots with traction and warm socks
- Hat, glove liners plus insulated gloves, neck gaiter
- Swimsuit for hot springs and pools
- Reusable crampons or microspikes for icy sidewalks and viewpoints
With the right gear and a flexible plan, winter days feel rewarding rather than limiting. The light is soft and photogenic. Crowds thin out at famous spots like Skógafoss and the Reynisfjara black sand beach.
Sample budget plans for a cheap Iceland trip
Here are two realistic outlines that keep costs tight without skimping on the good stuff.
4 days in late January, Reykjavík base without a car
- Day 1: Arrive early, drop bags, soak at Sky Lagoon or a neighborhood pool, evening aurora tour if skies are clear
- Day 2: Golden Circle small group tour with Secret Lagoon stop
- Day 3: South Coast waterfalls and black sands day tour
- Day 4: Reykjavík art and coffee day, fly home on the red-eye
Approximate budget per person
- Roundtrip flight from East Coast US: 350 to 550 dollars in sales
- Three nights in a simple guesthouse: 75 to 120 dollars per night
- Two full-day tours: 90 to 140 dollars each for budget small-group options
- Airport transfers and local transport: 50 to 80 dollars total
- Food with some groceries: 30 to 45 dollars per day
Expect something in the 850 to 1,250 dollar range plus optional spa entry and souvenirs.
5 days in early February, self-drive South Coast
- Day 1: Keflavík to Reykjavík, stock groceries, thermal pool
- Day 2: Golden Circle highlights early, overnight near Hella or Hvolsvöllur
- Day 3: Waterfalls, Dyrhólaey, Reynisfjara, sleep near Vík
- Day 4: Skaftafell and Jökulsárlón, optional ice cave tour, return to Vík or Hveragerði
- Day 5: Leisurely drive back, quick Reykjavík wander, flight
Approximate budget per person sharing two people
- Flights: 350 to 600 dollars
- Car rental 4×4: 35 to 60 dollars per day in winter, five days 175 to 300 dollars
- Fuel for South Coast loop: 120 to 180 dollars total shared
- Four nights in simple doubles: 70 to 120 dollars per person per night
- One paid tour ice cave or glacier: 150 to 200 dollars
- Food mix of groceries and a few meals out: 35 to 55 dollars per day
A realistic range lands around 1,100 to 1,600 dollars per person.
When to avoid if you are chasing the lowest price
- First week of January: New Year’s festivities keep rates inflated
- Early November: Iceland Airwaves pushes Reykjavík rates up
- Christmas to New Year: expect peak pricing and limited availability
- Late June through mid August: high season across the board
If your dates overlap with any of these windows, consider staying outside Reykjavík during city festivals, flying midweek, or adjusting by a few days to slide under a price spike.
Northern Lights and the cheapest months
The low-cost winter months also coincide with aurora season. That helps the value equation, but set expectations wisely.
- The Northern Lights require dark skies, solar activity, and clear weather
- You might see them on your first night or not at all in a week
- Use the cloud cover forecast at vedur.is and be ready to drive short distances to escape clouds
- Guided aurora trips add expertise and flexibility, and many operators offer a second try if you miss them the first night
Photographers love January and November for a different reason too. The sun rides low, blue hour stretches long, and waterfalls surrounded by frost look otherworldly.
What about May or September for value
If your priority mixes price with comfort, these shoulder months deserve a look.
May
- Long days, blooming moss, and puffins arriving on some cliffs late month
- Most roads are clear, yet prices remain below summer
- Good time for a compact Ring Road loop if you keep a brisk pace
September
- Crowds taper, green landscapes shift to autumn tones
- Nights are dark enough for auroras from early month
- Weather is more settled than late fall, and the highlands may still be reachable early on with proper vehicles
Neither month beats January on raw price, but they often feel like the best deal relative to what you get.
Quick answers to common questions
Is December cheap?
- Early December can be reasonably priced, especially weekdays. The weeks around Christmas and New Year are not.
Can you do the full Ring Road in January?
- You might, but it is not wise to plan it without generous buffers. Short daylight and storm closures can derail tight itineraries. Focus on Reykjavík, the Golden Circle, the South Coast, and perhaps Snæfellsnes with a close eye on forecasts.
Is it safe to drive in winter?
- With a 4×4, winter tires, and experience on snow and ice, many visitors do fine. If that sounds stressful, base in Reykjavík and take guided day trips.
Are prices trending up or down?
- Year to year, prices move with fuel, currency, and capacity. The pattern of cheap winter, pricey summer has held steady for years.
Can you find discounts last minute?
- Sometimes, especially for hotels in winter. Flights reward earlier booking more often than not. Use flexible fares if your plans are fluid.
A simple checklist to lock in the lowest fare window
- Aim for late January or early February, or most of November outside festival week
- Fly Tuesday or Wednesday, red-eye into Keflavík, and return midweek
- Book flights 2 to 4 months out for winter and 4 to 6 months for summer
- Reserve cancellable lodging early, then recheck weekly for drops
- Decide early whether you will rent a car or base in Reykjavík with tours
- Pack winter layers and microspikes so weather does not force expensive last-minute gear buys
- Save on food with one grocery run and simple breakfasts
- Keep a flexible day plan around the forecast to get full value from your time
If your goal is the lowest possible spend, January is your month. Pair it with thoughtful planning and you get wide open waterfalls, steamy pools in crisp air, and far fewer people at iconic viewpoints, all for a fraction of the midsummer price tag.
FAQ on Budget-Friendly Iceland Travel
Discovering the best time to visit Iceland without breaking the bank can be as exciting as the trip itself. Here’s a quick dive into frequently asked questions that’ll help you plan your dream adventure.
What is the cheapest month to visit Iceland?
January is the most economical month for traveling to Iceland, offering the lowest airfares and accommodation rates.
Are there other budget-friendly months?
Yes, early February and November, avoiding Iceland Airwaves week, are also inexpensive.
Is December considered a cheap month?
Early December can be affordable, especially during weekdays, but prices peak around Christmas and New Year.
Can you drive the Ring Road in January?
It is possible with flexibility and extra caution due to short daylight and potential weather disruptions.
Is driving safe in winter?
Yes, if using a 4×4 with winter tires and if you’re experienced with winter driving conditions.
Are prices likely to rise or fall?
Prices fluctuate with fuel, currency, and capacity, but the seasonal pattern has been stable.
Can last-minute discounts be found?
Possibly on hotels during winter, but flights usually reward early bookings.
What’s a good strategy for locking in low fares?
Travel late January or early February, book flights and accommodations early, and keep a flexible itinerary.
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